Chiangmai Carriage offers carriage rides through historic landmarks in Chiangmai

Question

Chiangmai Carriage offers carriage rides through historic landmarks in Chiangmai. The business is highly regulated by the city of Chiangmai. The company has following costs during April: $2,100 Monthly depreciation on carriage Fee paid to the City of Chiangmai Cost of sourvenir set given to each passenger Brokerage fee paid to brokers (60% of tickets are issued 15% of ticket revenue $0.85/set through these brokers: 40% are sold directly by the company Monthly cost of leasing motor vehicles Drivers (tour guides) are paid on a per passenger basis Monthly payroll cost of non-tour guide employees Marketing, website, utility and other monthly fixed costs $1.50/ticket sold by broker $48,000 $3.80 $7,500 $7,400 During April, the co. had 13,050 passengers. 85% of passengers were adults($21 fare) while 15% were children (%13 fare). 45

Explanation / Answer

1)

contribution margin Income statement

2)

number of passenger : 13050*(1+.10)= 13050*1.1= 14355

a)Figure that will on income statement:

contribution margin Income statement

25839/258390

10% increase

b)

Figures that will remain same:

contribution margin Income statement

Revenue   [(13050*.85*21)+(13050*.15*13) 258390 less:variable cost Fees paid to city of chiangmai [258390*15%) 38758.5 cost of sourvenir [.85*13050] 11092.5 Brokerage fee [13050*.60* 1.5 ] 11745 Tour guides [13050*3.8] 49590 Total variable cost (111186) contribution margin 147204 Fixed cost monthly depreciation 2100 lease mothly vehicle 48000 payroll cost 7500 marketing ,website 7400 Total fixed cost (65000) Net income 82204

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.